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Note 46564 - Cancelling/reversing an invoice/credit memo: Posting logic

Header
Version / Date 5 / 2004-06-09
Priority Recommendations/additional info
Category Consulting
Primary Component MM-IV Invoice Verification
Secondary Components

Summary
Symptom

When you cancel an invoice, the system posts a credit memo for the data in the invoice. The postings are made in accordance with the credit memo posting logic.
This means that the postings in the invoice are not necessarily reversed. This is especially the case when an invoice is to be cancelled for a purchase order for which several invoices have already been posted.
Similarly, when you cancel a credit memo, the postings made in the credit memo are not necessarily reversed.

The following examples illustrate two cases in which a cancellation results in postings different to those in the invoice.

Example 1:

Purchase order for 100 pieces à $10 / piece.
Goods receipt for 50 pieces
Invoice 1:  50 pieces à $ 10 = $ 500
Invoice 2:  50 pieces à $ 11 = $ 550
If you cancel the first invoice:

                          GR      IR1    IR2      Cancel IR1
Stock account              500 +
GR/IR clearing account     500 -  500 +   550 +     550 -
Vendor account                    500 -   550 -     500 +
Price difference account                            50 +

Example 2:

Purchase order for 100 pieces à $ 10 / piece.
Invoice 1:  10 pieces à $ 10 = $ 100
Invoice 2:  10 pieces à $ 20 = $ 200
Reversal/credit memo for invoice 2

                          IR1        IR2        Cancel IR2
Stock account
GR/IR clearing account    100 +      200 +       150 -
Vendor account            100 -      200 -       200 +
Price difference account                          50 -




Other terms

MRHG, MR08, MR8M, MR11SHOW

Solution
https://service.sap.com/sap/support/notes/46564

(SAP Service marketplace login required)

Affected Releases
Software Component Release From Release To Release And subsequent
SAP_APPL2222A22JX
SAP_APPL3030031IX
SAP_APPL4040A40B
SAP_APPL4545A45B
SAP_APPL4646A46B
SAP_APPL46C46C46C
SAP_APPL470470470
SAP_APPL500500500
SAP_APPL600600600X

Related Notes
1174830FAQ: Invoice cancellation for services
783345MR11SHOW: Posting logic
740877Cancellation of obsolete documents
509162Budget overrun for invoice receipt cancellation
308008FAQ: Posting logic: GR/IR clearing account
116250MR08/MR8M:Cancellation+exchange rate diffrnces(KDM)